View our guide on how to interpret the FX Dashboard.
- Despite announcing a deal “in principle” two months ago, the US-China “phase one” trade agreement appears to be in jeopardy once more. In addition to this week’s protectionist actions and rhetoric against South American nations and France, President Trump implied that there is “no deadline” for the phase one deal and that it may have to wait until after the 2020 election.
- Later, Commerce Secretary Wilbur Ross suggested the US would go through with another round of tariffs on Chinese goods in two weeks’ time unless there was substantial trade progress.
- The IEA stated that OPEC is likely to delay its decision on output “until the market becomes clearer” later this week.
- FX: The British pound was the strongest major currency on the day (see four possible scenarios we’ll be watching ahead of next week’s election!). The US dollar was the weakest major.
- Commodities: Gold gained nearly 1% in a safe haven bid; oil tacked on about 0.5% on the day.
- US indices closed nearly 1% lower on the day on concerns over the fate of the long-promised “phase 1” trade deal between the US and China, though indices did finish off the morning’s worst levels.
- REITs (XLRE) were the strongest major sector on the day (and only one of two, along with Utilities (XLU) to rise). Energy (XLE) and Financials (XLF) brought up the rear.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.